Binary Option Trading using the ADX and EMA Cross System Binary Options 2020

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Binary Option Trading using the ADX and EMA Cross System

This system is based on two indicators only and offers consistent profits. It is called the ADX and EMA Cross System and it is an uncomplicated system suitable even for amateur traders. This system on reflection appears suitable for binary option trading as well. The system is based on an average directional movement index (ADX) set on period 14 and having the EMA’s set at two periods (3 and 10). It is important to have an idea of ADX to give you some perspective, but there is no need to go in depth with your studies of it.

The cross system strategy is fairly simple and it is best if you use indicators that are easy to read. Set your EMA 3 and your +DI to a single colour and your EMA 10 and -DI to a second colour. This allows you to see exactly where one colour crosses the other. Say you set the first 2 to red and the second 2 to green, when green crosses red from underneath, it is possibly a call opportunity and when the opposite happens, it is a put signal. Check both your ADX and your EMAs for the cross to be sure the signal is valid. This strategy has been used successfully for trading using daily charts and works well with currency pairs and stocks. Check your candlestick patterns to ensure they have closed before you confirm your signals.

When the ADX turns bullish and is confirmed by the moving average crossover becoming bullish as well, this will indicate a call signal. Make sure the current candle has closed and that the EMA and ADX lines are fixed where you would want them to be. The opposite works exactly the same. The ADX will become bearish and the moving average crossover will do the same, this is then a Put signal. Wait for candle closure to double check the lines of the EMA and ADX are fixed in the right direction before acting on the signal. Due to this being a forex strategy, there is no information on expiries. While Arsalan suggests working on the basis of daily charts, it may be possible to try the strategy on M30 and above when working on binaries.

Pros and Cons of using the ADX and EMA Cross System

This strategy appears to work quite well and the ADX is a reliable, strong indicator to work with. When using the colour matching system, it is easy for even an amateur to use the system. This specific strategy has been tried and tested by its creator and has made profits consistently. When used on time frames that are higher, the signals are even more reliable.

The charts are neat and tidy and there aren’t any unusual or complicated rules to take in to account when working with the system. Watching toe two colours and noting their cross over points is enough to help you have a profitable strategy. If you are prepared to put in some effort, this strategy could work for you too. Perhaps do a test run at a higher time frame (perhaps daily to start) until you get used to the system. Thereafter you could perhaps look at lower time frames such as the M30.

ADX EMA 60 Seconds Strategy for Binary Options

60 Seconds Strategy – Quick and effective trading

I am well aware that many of you expect the fastest possible results and real profits from transactions on Binary Options. So I prepared a brief description of a strategy, which I find not only very effective, but also simple to use. It is based on the combination of two standard indicators available in each analytical program – ADX and EMA. We recommend uTrader, which is a regulated broker in the EU, and has an accounts in many local currencies.

ADX EMA strategy

To use this strategy we will use price charts with a one-minute time frame. The expiration time of the operation as the name suggests will be 60 seconds. As I just mentioned, we use two indicators here:

ADX

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ADX (Average Directional Movement Index) – average directional index of movement. This is a standard indicator for the MetaTrader 4 platform. The default period for the indicator is 14 candles (in our strategy it will be 5 candles). The period is working, because the more investors see the signals, the better because of the accumulation of purchasing power.

ADX alone verifies only the occurrence of a trend when it exceeds the value of “20” and continues to rise and the strength of the trend. This is complemented by two additional lines – + DI (line of bullish movement) and -DI (line of bearish movement). Thanks to them, we receive confirmation of input or exit signals.

Settings for ADX indicator Change colours of lines

Moving Average

Moving Average – in our case, 28 periods. If we used only this indicator, closing or opening positions would occur at the moment of crossing the Exponential Moving Average by price.

Settings for Exponential Moving Average 28

CALL OPTION – GROWTH

In the case of a 60 second ADX EMA strategy we decide to open CALL option,when :

  • the green ADX line is located above the red line
  • price crosses and is above EMA 28
  • the body of the signal candle presents an upward trend
  • the signal is even stronger when the candle preceding the signal candle also has a bullish body

Price crosses the moving average, the green line ADX is above the red line, while the body of the signal is bullish.

PUT OPTIONS – FALL

In the case of the 60-second ADX EMA strategy, we decide to open the PUT option when:

  • the red ADX line is above the green line
  • price crosses and is below EMA 28
  • the body of the signal candle presents a downward trend
  • the signal is even stronger when the candle preceding the signal candle also has a bearish body

The price crosses the moving average, the red line is above the green, and the signal candle body is bearish

The chart below shows some examples of bets on GBP/USD M1 :

The first three strong signals – all the assumptions are met. The last signal is weak – because the candle that precedes the signal hasn’t bearish but bullish body.

Based on: https://www.binaryoptionsdaily.com

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Arsalan’s ADX and EMA Cross System – Adjusted for Binary Options Trading

Full Review of Arsalan’s ADX & EMA’s Cross System

No he’s not Aslan from Narnia, this is Arsalan and I found his strategy on forex-strategies-revealed.com. He uses only two indicators and has been experiencing consistent profits with this strategy that he calls “ADX & EMA’s Cross System”. The rules are quite simple to understand even for a beginner, if he’s looking for a good strategy he can start practicing with immediately. While setting up my charts as the strategy required, I noticed that it looks very promising and gave me a good feeling it will work as a binary options strategy! Read on to see if my first reaction was right.

What is Arsalan’s ADX & EMA’s Cross System?

This strategy uses Average Directional Movement Index, (ADX – period 14) and EMA’s set on period 3 and 10. If you are not familiar with ADX I recommend that you take a look at this great article: Average Directional Movement Index – The Money Maker? You don’t have to study all the details about how ADX works if you are not interested but it can help you get perspective on this strategy.

Let us just jump ahead to how the strategy works. Allow me to explain it as simply as Arsalan does it in his presentation of the strategy. Arsalan wanted to make the indicators easy to read so he suggested that your EMA 3 and +DI should both have the same color. The same goes for the EMA 10 and -DI. For example, if EMA 3 is green and EMA 10 is red we can quickly spot a call signal when the green crosses the red from below, going up. All you need to know is that, when green crosses red from below it means this is a possible call opportunity and when it does the opposite it is a put signal.

To take a signal you need to confirm that this cross is occurring on both the EMA’s and the ADX or else the signal is not a valid setup. The opposite, green line crossing red from above for put setups, is true. Arsalan uses the daily charts when he trades with this strategy and mentions that it works very well with stocks and currency pairs. Something to keep in mind is that both the EMA and ADX can change their positions if the candle reverses before it closes. To avoid such false setups, always wait for the current candle to close, confirming your call/put entry!

Notice the red and green colors, +DI matches EMA 3 and -DI matches EMA 10. Ignore the blue ADX line as it is not mentioned in the strategy, hence it is not significant for finding setups.

Call Signal:

Enter calls when ADX makes a bullish crossover, confirmed by a bullish moving average crossover. Wait to enter until the current “signal candle” is closed so that the position of the ADX and EMA lines are fixed in the desired direction.

Put Signal:

Enter puts when ADX makes a bearish crossover, confirmed by a bearish moving average crossover. Enter when the current “signal candle” is closed so that the position of the ADX and EMA lines are fixed in the desired direction.

Unfortunately, there isn’t any info about expiries because this is a FOREX strategy. As for the timeframe, Arsalan suggests using the daily charts but I think you can try it on M30 and above for binaries. We can talk more about expiries and timeframes in the forums!

Why does Arsalan’s ADX & EMA’s Cross System Suck?

I can’t really say anything bad about this strategy. It doesn’t suck at all. The only part that sucks is that we can’t say anything about expiries or how well it works on lower time frames.

Why doesn’t Arsalan’s ADX & EMA’s Cross System Suck?

This is a pretty solid strategy! The ADX is a strong and reliable indicator that keeps you in touch with the trend. With the use of correct colors and Arsalan’s explanation it is easy to use even for a beginner. Perhaps the best advantage is that this strategy has been tested live and has been making consistent profits for the creator of the strategy. Furthermore, what makes this strategy rock even more is that it is supposed to be used on higher time frames where signals are more reliable

Not King of the Jungle but Bulls & Bears?

Even though Arsalan isn’t Aslan the lion, with his strategy you can become a king of the bulls and bears. One of the things I really like is the chart, the chart isn’t messy and there are no complex rules to keep track of. Just keep an eye on two different colors and confirm when they cross each other and you have a profitable strategy. Arsalan has successfully traded live, using his system, so it should work for you too if you put a little effort into it. He suggests you demo test the strategy first till you are comfortable with how it works. Higher time frames like the daily are preferred but I took a peek at lower time frames and it looks promising even on the M30.

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